Interpublic Stock Analysis (NYSE:IPG)

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$25.44 $0.61 (2.46%) IPG stock closing price Jul 20, 2017 (Closing)
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Interpublic
Updated on : Jul 20, 2017
previous close
IPG 25.4 (0%)
S&P 500 2473.5 (0%)
Closing Price On: Jul 20, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Advertising Marketing Services
Sector :
Business Services
5 Quarter Revenue
Revenue Growth
2017-Q1
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
2.2%
Operating Profit
Operating Margin:
12.1%
Sector Average:
8.6%
5 Quarter Net Profit
Net Margins
2017-Q1
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
1.92B
Debt/Equity Ratio:
 0.96
Compared to the industry
Cash Flow
Operating cash flow:
-$371.8M
Net Income:
$21.5M
Dividend Yield
IPG dividend yield:
2.48%
PROS      CONS
Operating Margins
ROIC
ROE
PE Valuation
Long Term Growth
High Debt Burden
Cash Flow
FCF Margin
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
IPG PS :
1.3
Industry PS :
1.7
Sector:   Business Services.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
16.3%
Return on Equity:
31.1%
Free Cash Flow Margin:
-22.6%
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Interpublic Analysis Video

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View Interpublic stock analysis video. This is our IPG analyst opinion covering the buy and sell arguments for IPG stock.

Interpublic Group of Companies Inc Stock Rating (3.3/5)

Our Interpublic stock opinion is based on fundamentals of the company. This Interpublic stock analysis is based on latest Q1 earnings for 2017. The stock price analysis takes into account a company's valuation metrics.

Should you buy IPG stock?

  • Interpublic's average operating margin of 12.1% was exceptional.
  • IPG stock is trading at an earnings multiple of 17.7 which is better than the industry average of 22.3.
  • Interpublic has an attractive ROIC (Return on Invested Capital) of 16.3%
  • Interpublic has a good Return On Equity (ROE) of 31.1%.

Should you sell IPG stock?

  • Revenue growth of 2.2% has been weak over the last 5 years.
  • With a debt/equity ratio of  0.96, Interpublic is highly leveraged in comparison to Business Services peers.
  • The company has negative Free Cash Flows (FCF), with a negative FCF margin of -22.6%.

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